Context:
To combat rising cases of fraudulent entities collecting investor funds, SEBI, in collaboration with the National Payments Corporation of India (NPCI), is launching a verified UPI handle system called @valid for SEBI-registered intermediaries.
What Is the @valid UPI Handle?
- A unique, verified UPI ID format for SEBI-registered entities.
- Format:
[readable-name][segment-abbreviation]@valid(e.g., abcbrk@valid for a stockbroker). - Helps investors verify authenticity before making payments.
Applicability (Who Can Register for @valid)
10 categories of SEBI-registered investor-facing intermediaries, including:
- Stockbrokers (suffix: brk)
- Depository Participants (dp)
- Mutual Funds (mf)
- Investment Advisors (ia)
- Portfolio Managers (pm)
- Research Analysts (ra)
- REITs (reit) and others
Role of NPCI and Banks
- NPCI will allocate @valid handles.
- 52 Self-Certified Syndicate Banks (SCSBs) will initiate requests for UPI handles after verifying applicants via SEBI’s SI Portal.
- Due diligence to prevent unauthorised entities from getting verified handles.
What Changes for Investors?
- Before making UPI payments, investors will:
- See a white thumbs-up icon inside a green triangle (symbol of SEBI verification).
- Confirm the UPI handle ends with @valid.
- Existing payment modes (NEFT/RTGS/cheque) remain unaffected.
- For new SIPs or renewal/extensions, only @valid UPI handles must be used.
- Daily UPI payment limit for capital market transactions: â‚ą5 lakh.
Fraud Prevention Measures
- Only verified SEBI-registered entities can get @valid handles
- Multiple UPI IDs allowed for entities with different bank accounts
- No change in investor rights or grievance redressal mechanisms
